Question

Che The Alpine House, Inc., is a large retailer of snow skis. The company assembled the information shown below for the quarter ended March 31: Amount 880,000 440 points eBook Sales Selling price per pair of skis Variable selling expense per pair of skis Variable administrative expense per pair of skis Total fixed selling expense Total fixed administrative expense Beginning merchandise inventory Ending merchandise inventory Merchandise purchases Hint $ $ $ $ 135,000 100,000 65,000 115,000 300,000 References Required: 1. Prepare a traditional income statement for the quarter ended March 31. 2. Prepare a contribution format income statement for the quarter ended March 31. 3. What was the contribution margin per unit? Complete this question by entering your answers in the tabs below. Required 1 Required 2 Required 3 Prepare a traditional income statement for the quarter ended March 31. The Alpine House, Inc.

Answer 1

Sales units	2000		=880000/440
1
Traditional income statement
Sales		880000
Cost of goods sold		250000	=65000+300000-115000
Gross margin		630000
Selling and administrative expenses:
Selling expenses	229000		=135000+(2000*47)
Administrative expenses	134000		=100000+(2000*17)
		363000
Net operating income		267000
2
Contribution format income statement
Sales		880000
Variable expenses:
Cost of goods sold	250000
Selling expenses	94000		=2000*47
Administrative expenses	34000		=2000*17
		378000
Contribution margin		502000
Fixed expenses:
Selling expenses	135000
Administrative expenses	100000
		235000
Net operating income		267000
3
Contribution margin per unit	251		=502000/2000